A regional official of Argentina confirmed that the country would be auctioning its international rights to explore a portion of the Vaca Muerta oil and gas formation. The said formation is estimated to be one of the biggest deposits in the Western Hemisphere.
The Vaca Muerta is located in the Neuquen Province. The authorities had announced it would auction a 500 square kilometer area in the formation. This decision comes after the winners of the concession rights awarded back in 2008 failed to complete the required investments for the grant. The said decision was announced by Patagonia region energy minister Guillermo Coco.
In a telephone interview, Coco said, "The idea is to hold the auction in March or April. We are going to test the market to see how interested companies are, at least in exploration."
The deposit of resources had been the focus of many investment moves since its discovery. The main drawback through is the reluctance of many companies to make investments in the country due to its interventionist economic policies. The example of such policies is the seizure done by Argentinian President Cristina Fernandez of energy company YPF from Repsol. The reason for such decision was the claim that the Spanish firm had not invested enough in Argentina.
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